USD/JPY’s retracement extends below 136. Nonetheless, economists at Société Générale expect the pair to find solid support at the 135.20/134.60 zone.

A short-term dip is expected towards 135.20/134.60

“USD/JPY is now challenging the 200-DMA and close to graphical resistance of 138 representing December/March peaks. This hurdle must be overcome to affirm a larger bounce.”

“A short-term pullback is not ruled out, however, 135.20/134.60, the 38.2% retracement of last bout of up move should provide support.”

“If the pair establishes above 138, the phase of rebound could extend towards projections of 139.60/140.30.”